Barrick to raise $842M from spinoff

Toronto-based Barrick Gold Corp. said Friday it expects to raise net proceeds of more than $842 million in the first public sale of shares in its new subsidiary, African Barrick Gold.

The 101 million common shares will be sold to institutional investors such as pension funds at an initial priceofabout $8.78 Cdn per sharenext Wednesday and public trading is expected to begin the same day.

The new company will trade on the main floor of the London Stock Exchange.

Barrick the world's biggest gold mining company will hold a three-quarters stake in the new firm.

If demand is good, Barrick may offer another 10.1 million shares.

"As an Africa-focused public company, we believe that African Barrick Gold will be better positioned to generate shareholder value from its operating platform, value which Barrick will continue to benefit from as a majority shareholder," Aaron Regent, thepresident and chief executive, said in a release.

At its initial share price, African Barrick Gold will have a market value of $3.59 billion.